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Question: Helter Industries, a company that produces a line of women’s bathing suits, hires temporaries to …

by | Nov 30, 2023 | Posted Questions



Helter Industries, a company that produces a line of women’s
bathing suits, hires temporaries to help produce its summer product
demand. For the current four-month rolling schedule, there are
three temps on staff and 12 full-time employees. The temps can be
hired when needed and can be used as needed, whereas the full-time
employees must be paid whether they are needed or not. Each
full-time employee can produce 204 suits, while each part-time
employee can produce 164 suits per month.

     Demand for bathing suits for the next
four months is as follows:

MAY JUNE JULY AUGUST
3,295 2,895 3,195 3,095

     Beginning inventory in May is 405
complete (a complete two-piece includes both top and bottom)
bathing suits. Bathing suits cost $40 to produce and carrying cost
is 24 percent per year.

    Develop an aggregate plan that uses the
12 full-time employees each month and a minimum number of temporary
employees. Assume that all employees will produce at their full
potential each month. Calculate the inventory carrying cost
associated with your plan using planned end of month levels.
(Round “Inventory cost” to 2 decimal places.)

        May         June         July         August
  Forecast 3,295   2,895   3,195   3,095  
  Beginning inventory            
  Production required            
  Regular workforce            
  Regular production            
  Temp
workforce
           
  Temp
production
           
  Total production            
  Ending inventory            
  Inventory cost $
  
$
  
$
  
$
  
  
            $
  

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